Setting up a company in Cyprus
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A full EU member state with onshore credibility, a low corporate tax rate and a treaty-rich network — ideal for EU holding and IP structures. We handle formation, substance and reporting.
Flat fee, answers in 24 hours. We specialise in non-US / EU jurisdictions.
Why founders incorporate in Cyprus
Cyprus gives you an EU base inside the single market with a common-law-based legal system — not an offshore label. Here are the durable facts.
A full EU & eurozone member
A Cyprus private company limited by shares trades inside the EU single market, accesses the EU Parent-Subsidiary and Interest & Royalties Directives, and carries onshore credibility — Cyprus is not treated as an offshore zone.
12.5%, rising to 15% from 2026
Historically one of the lowest corporate tax rates in the EU at 12.5%, rising to 15% from 2026 to meet the OECD global minimum. An IP Box regime gives a low effective rate on qualifying intellectual-property income.
No withholding to non-residents
As a general rule, dividends, interest and royalties paid to non-residents are exempt from withholding tax (with limited exceptions for blacklisted/low-tax jurisdictions), alongside broad dividend and participation exemptions. VAT is 19% (reduced 9% and 5%).
60+ double-tax treaties
Cyprus has double-tax treaties with more than 60 countries, plus EU directive access — a strong base for holding and IP structures that need treaty coverage.
Management & control in Cyprus
Tax residency depends on management and control being exercised in Cyprus — a majority of directors based in Cyprus and board meetings held there. Audited accounts, annual returns and transfer-pricing/CbCR rules apply.
EU holding & IP structures
Best for EU holding companies, IP and royalty structures, international trading and fund/family-office vehicles, and companies redomiciling into the EU for credibility and treaty access.
How Point Legal helps with Cyprus structures
A Cyprus company only delivers its benefits if substance and reporting are right. Your dedicated counsel and CFO-led tax team handle it on a flat monthly fee.
Incorporation & registered office
Name approval, Memorandum and Articles, the HE1/HE2/HE3 filings, registered office and company secretary — the full incorporation through to Certificate of Incorporation.
Management-and-control setup
Director arrangements and board-meeting practice so the company qualifies as Cyprus tax-resident and can access the treaty network.
IP Box & treaty structuring
IP Box qualification, dividend/participation exemptions, and treaty planning — built around your actual operations and led by ex-CFO operators.
Audit, returns & VAT
Audited accounts, annual return, tax returns, and VAT/VIES registration coordinated each year, including transfer-pricing and CbCR obligations.
Redomiciliation in & out
Inbound redomiciliation into Cyprus for EU credibility, or outbound continuation to another jurisdiction where permitted.
Ongoing legal & finance partner
Always-on legal and CFO-led tax support across your group, with quick questions and document reviews included in the subscription.
Frequently asked questions
Is Cyprus an offshore jurisdiction?
No. Cyprus is a full EU member state and eurozone country and is not treated as an offshore zone. It offers a competitive onshore tax regime with a common-law-based legal system and EU credibility, which is exactly why it is used for holding and IP structures.
What is the corporate tax rate in Cyprus?
Corporate tax has historically been 12.5%, one of the lowest in the EU, and rises to 15% from 2026 to meet the OECD global minimum. Qualifying intellectual-property income can be taxed at a much lower effective rate under the IP Box, and there is no withholding tax on most outbound dividends, interest and royalties.
How does a Cyprus company become tax resident?
Through management and control being exercised in Cyprus. In practice that means a majority of directors based in Cyprus and board meetings held in Cyprus. This is what allows the company to obtain a tax residency certificate and use the double-tax treaty network.
What reporting is required?
All Cyprus companies must keep accounting records, prepare and file audited annual financial statements, file an annual return with the Registrar, and file tax returns. Transfer-pricing rules, country-by-country reporting and AEOI also apply.
Can I redomicile an existing company to Cyprus?
Yes. Cyprus law allows foreign companies to redomicile into Cyprus and Cypriot companies to continue into other jurisdictions, provided the other jurisdiction permits it. We handle the continuation process on both sides.
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